The Governor of the Bank of England suggests that the economic policies put
forward by Jeremy Corbyn could “imperil” Britain's economic recovery

Jeremy Corbyn’s economic policies would “hurt” the poor and elderly and “imperil” Britain's economic recovery, the Bank of England governor has suggested.

Mark Carney indicated that said that the plans put forward by the new Labour leader and John McDonnell would increase inflation and could in turn hit the economy.

The comments, made during an appearance at the Treasury select committee, will further undermine Mr Corbyn’s economic credentials.

It comes after he was criticised after calling for people to receive unlimited benefits.

At Wednesday’s committee hearing, Mr Carney was questioned by John Mann about the impact on the economy of “People’s Quantitative Easing” and taking away the Bank of England’s independence, two policies put forward by Mr Corbyn and Mr McDonnell.

Mr Carney said: “The issue would be imperilling potentially the achievement of price stability. The consequence of that of course would be inflationary.

“The people who tend to get hurt the most by inflation are the poor, the elderly, those that can’t hedge themselves – that’s been the experience throughout history and I’m sure that will be the experience in the future if the Bank of England were not to conduct policy not consistent with achieving its mandate from parliament.”

The thinly-veiled warning from the independent Governor of the Bank came on yet another day of chaos for Mr Corbyn:

• He was accused of another military gaffe after appearing not to turn up at a service outside Parliament to honour troops who have returned from Sierra Leone where they were assisting with the Ebola crisis.

• He U-turned on a pledge that Labour would oppose Trident, insisting he will abide by the decision of his backbenchers.

Mr Corbyn has proposed a “People’s Quantitative Easing” scheme in which the Bank of England would “be given a new mandate … to invest in large-scale housing, energy, transport and digital projects”.

And Mr McDonnell has threatened to strip the Bank of England of its independence, in a move that economists have warned could threaten to enlarge the UK’s debt pile.

Although Mr Corbyn and Mr McDonnell were not referred to by name during the committee hearing, sources present said Mr Mann’s questions were “unambiguous” and “clearly referred to the new Labour leader”.

Mr Carney was also asked if his job would be “less attractive” if the “chancellor was instructing you”.

He said: “The construct here where bank operates with independence to ... achieve a mandate that is defined by the people through parliament is the right model.”

Mr Corbyn was on Wednesday forced to say he will sing the national anthem in future as he was accused of making a third military gaffe since become Labour leader.

"Of course I love this country, I was born and brought up in this country and I love this country for so many things”

Jeremy Corbyn

He agreed to sing God Save the Queen in future after six of his own shadow cabinet ministers criticised his failure to do so at a Battle of Britain memorial event.

However, he risked further anger after he failed accusations of failing to turn up to greet soldiers returning from Sierra Leone as they marched past Parliament.

In an interview with Channel 4 News, Mr Corbyn insisted he will not “resign” and that he can “cope” with the pressure of being Labour leader.

Jeremy Corbyn said he doesn't think the Labour Party will campaign to leave the EU

He also claimed that he “loves” Britain following the row over his failure to sing the national anthem.

"Of course I love this country, I was born and brought up in this country and I love this country for so many things.”

However, he risked causing anger after he said that it was “strange” that people are “over-concerned” about his refusal to sing God Save the Queen.

He also said that he could not see Labour campaigning to leave the European Union in the latest attempt to calm a row over the issue at the top of the party.

Mr Corbyn has in recent days been heavily criticised by members of his own party for suggesting that he could campaign for Britain to leave the EU as well as repeating his opposition to the Trident nuclear deterrent.

Asked about Trident, he said that he would accept his party’s decision if the majority of MPs votes to keep Trident.

Admitting he was under pressure, he added: "I wouldn't be doing this if I didn't think I was able to. I do have to cope - and I will cope."